2024 AGM
Trading Update
Dublin /
London, 10 May 2024: Cairn
Homes plc (“Cairn”, “the Company” or “the Group”) (Euronext Dublin:
C5H / LSE: CRN) is holding our Annual General Meeting (“AGM”) today
at 12.00pm at The Merrion Hotel, Merrion Street Upper, Dublin 2 and
in advance provides the following update on current trading for
FY24.
Current
Trading
-
The demand backdrop for our well
located, energy efficient new homes remains exceptionally high
across all tenure types. In our core first time buyer market, State
supports for our customers, a more favourable mortgage market and
the limited supply of competitively priced starter homes are
driving the positive momentum in our business.
-
The Company continues to grow our
longer-term sales pipeline reflecting the increase in active large
apartment projects. Our current total closed and forward orderbook
now stands at over 2,750 new homes and a net sales value in excess
of €1.05 billion (29 February 2024: 2,473 closed and forward sales
with a net sales value of €946 million). Over 1,000 of these units
will be delivered in 2025 and beyond.
-
Our first three forward fund
transactions will deliver nearly 1,300 much needed Social
& Affordable new homes, with the first transaction at Parkside
(368 new homes) expected to close in the short-term and the other
two transactions expected to complete in H2 2024.
-
Agreed commercial terms with a
leading university for the forward funded delivery of c. 500
student beds in a scaled development adjacent to their campus. The
student accommodation market is significantly undersupplied and the
Government has recently launched a new initiative with long-term
funding to increase the supply of affordable student
housing.
-
Received seven new grants of
planning permission for c.1,500 new homes through both the
Large-scale Residential Development (LRD) and Strategic Development
Zones (SDZ) planning processes, further underpinning our
medium-term delivery.
-
Increased our existing €277.5
million sustainability-linked facility by €50.0 million (to €327.5
million). Home Building Finance Ireland (HBFI), the State supported
lender, will be joining our syndicate of lenders. These funds will
be used to support the ongoing growth of our established scaled
operating platform as we continue to expand and invest in our
business and replace maturing debt facilities.
Reaffirming
FY24 Guidance
-
The Company reaffirms our FY24
guidance:
-
c. 2,200
units[1];
-
Operating profit of c. €145
million; and
-
ROE of 15%.
-
The Company remains committed to
distributing surplus cash to shareholders and our significant cash
generation in 2024 and beyond will continue to fund consistent
shareholder returns. The remaining c.€13 million in the FY23 share
buyback programme is expected to complete shortly, at which point
the Company will issue a further capital allocation
update.
Cairn will release a H1 2024
trading update in early July 2024 in advance of 2024 interim
results on 4 September 2024.
Commenting on the trading update,
Michael Stanley, CEO, said:
“We are pleased that our housing
output will grow by nearly 30% this year and our forward order book
of in excess of €1 billion is a testament to the exceptional demand
for our homes. What is equally pleasing is that the broader
industry is ramping up completions and Government initiatives are
working.”
For further information,
contact:
Cairn Homes
plc +353 1 696 4600
Michael Stanley, Chief Executive
Officer
Richard Ball, Chief Financial
Officer
Stephen Kane, Director of
Corporate Finance & Investor Relations
Ailbhe Molloy, Investor Relations
Manager
Drury
Communications +353 1 260 5000
Billy Murphy
Claire Fox
Morwenna Rice
Notes to
Editors
Cairn Homes plc (“Cairn”) is an
Irish homebuilder committed to building high-quality, competitively
priced, sustainable new homes and communities in great locations.
At Cairn, the homeowner is at the very centre of the design
process. We strive to provide unparalleled customer service
throughout each stage of the home-buying journey. A new Cairn home
is expertly designed, with a focus on creating shared spaces and
environments where communities thrive. Cairn owns a c. 16,300 unit
landbank across 35 residential development sites, over 90% of which
are located in the Greater Dublin Area (“GDA”) with excellent
public transport and infrastructure links.